Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Index
Company Profile 2
Strategy Management 2
Board of Directors 7
Risk Management 9
Recommendations 20
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DABUR INDIA LTD
Company Profile
Dabur India Limited is a leading Indian consumer goods company with interests
in health care, Personal care and foods. Over more than 100 years we have been
dedicated to providing nature-based solutions for a healthy and holistic lifestyle.
Vision
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evaluate the overall performance of the business and its progress towards
objectives.
1) Strategy formulation
2) Strategy implementation
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efficiency of the process, controlling for variances, and making
adjustments to the process as necessary.
• When implementing specific programs, this involves acquiring the
requisite resources, developing the process, training, process testing,
documentation, and integration with (and/or conversion from) legacy
processes.
Thus, when the strategy implementation processes, there have been many
problems arising such as human relations and/or the employee-communication.
At this stage, the greatest implementation problem usually involves marketing
strategy, with emphasis on the appropriate timing of new products. An
organization, with an effective management, should try to implement its plans
without signaling the fact to its competitors.
In order for a policy to work, there must be a level of consistency from every
person in an organization, including from the management. This is what needs
to occur on the tactical level of management as well as strategic.
3) Strategy evaluation
Suitability
Suitability deals with the overall rationale of the strategy. The key point to
consider is whether the strategy would address the key strategic issues
underlined by the organisation's strategic position.
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• Would the organisation obtain economies of scale, economies of scope or
experience economy?
• Would it be suitable in terms of environment and capabilities?
Feasibility
Acceptability
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• what-if analysis
• stakeholder mapping
Focus on growing our core brands across categories, reaching out to new
geographies, within and outside India, and improve operational
efficiencies by leveraging technology
Be the preferred company to meet the health and personal grooming
needs of our target consumers with safe, efficacious, natural solutions by
synthesizing our deep knowledge of Ayurveda and herbs with modern
science
Provide our consumers with innovative products within easy reach
Build a platform to enable Dabur to become a global Ayurvedic leader
Be a professionally managed employer of choice, attracting, developing
and retaining quality personnel
Be responsible citizens with a commitment to environmental protection
Provide superior returns, relative to our peer group, to our shareholders.
Core Values
Passion For Winning: We all are leaders in our area of responsibility, with a
deep commitment to deliver results. We are determined to be the best at doing
what matters most
People Development: People are our most important asset. We add value
through result driven training, and we encourage & reward excellence
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Consumer Focus: We have superior understanding of consumer needs and
develop products to fulfil them better
Team Work: We work together on the principle of mutual trust & transparency
in a boundary-less organization. We are intellectually honest in advocating
proposals, including recognizing risks
Board of Directors
As on 31st March, 2008 Dabur's Board consists of 10 Members. Apart from the
Chairman, who is a Non-Executive Promoter Director, the Board comprises of
three Executive Directors (of whom one is Promoter Director), two Non
Executive Promoter Directors and four Non-
Executive Independent Directors. The composition of the Board as on 31st
March, 2008 is in conformity with Clause 49 of the listing agreement, which
stipulates that 50 per cent of the Board should comprise of Non-Executive
Directors, and if the Chairman is Non-Executive, one-third of the Board should
be Independent.
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Table 1: Composition of Board of Director
Dabur India Limited has laid down a clear policy defining the structure and
roles of different Board members. The policy of the company is to have a Non-
Executive Chairman
- Dr Anand Burman, a Chief Executive Officer (CEO) -Mr. Sunil Duggal, a
Corporate Affairs Director, one promoter Executive Director and six Non
Executive Directors. There are clear demarcations of responsibility and
authority between them.
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to provide their expert guidance on the relevant issues raised in the meetings of
the Board. He is also responsible for formulating corporate strategy along with
the Board of Directors.
The nomination committee works with the entire board to determine the
appropriate characteristics, skills and experience for the Board as a whole as
well as its individual members. The selection of Board members is based on
recommendations of the nomination committee.
The skill profile of independent Board members will be driven by the key tasks
defined by the Board, which is broadly based on:
Independent Corporate Governance
Guiding Strategy and Enhancing Shareholders Value
Monitoring Performance, Management Development &Compensation
Control and Compliance
Risk Management
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SWOT Analysis of Dabur India Ltd.
STRENGTHS:
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40
35
30
25
20
Dabur
15
FMCG Industry
10
5
0
SALES PAT FY SALES PAT FY
FY 04 04 FY 03 03
WEAKNESSES:
• Seasonal Demand
-Chyawanprash in winter.
-Vatika not in winter.
• Low Penetration
-Chyawanprash not available in rural areas.
• High price
-Like Vatika.
• Limited differentiation
-As in Hair oil category.
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OPPORTUNITIES:
• Untapped Market
-Chyawanprash
• Market Development
• Export opportunities.
• Innovation
THREATS:
• Existing Competition
-Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil
• New Entrants
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Porter’s five force model Analysis of Dabur India Ltd.
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Porter's five forces analysis is a framework for the industry analysis and
business strategy development. It uses concepts developed in Industrial
Organization (IO) economics to derive five forces which determine the
competitive intensity and therefore attractiveness of a market. Attractiveness in
this context refers to the overall industry profitability. An "unattractive"
industry is one where the combination of forces acts to drive down overall
profitability.
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profitability. Firms are able to apply their core competences, business model or
network to achieve a profit above the industry average. A clear example of this
is the airline industry. As an industry, profitability is low and yet individual
companies, by applying unique business models have been able to make a
return in excess of the industry average.
In case of Dabur since it is in major areas of FMCG and health care products
so it need not fear threat of substitute products in the recent future. But it has
to constantly re invent its existing product lines in order to cope up with the
innovations of its competitors.
Profitable markets that yield high returns will draw firms. This results in
many new entrants, which will effectively decrease profitability. Unless
the entry of new firms can be blocked by incumbents, the profit rate will
fall towards a competitive level (perfect competition).
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Economies of product differences
Brand equity
Switching costs or sunk costs
Capital requirements
Access to distribution
Absolute cost advantages
Learning curve advantages
Expected retaliation by incumbents
Government policies
Dabur India is in business for more than 100 years. Dabur India Ltd. made
its beginnings with a small pharmacy, but has continued to learn and grow to
a commanding status in the industry. The Company has gone a long way in
popularising and making easily available a whole range of products based on
the traditional science of Ayurveda. And it has set very high standards in
developing products and processes that meet stringent quality norms. So all
the advantages of first mover, learning curve, brand loyalty, patents and
economies of scale exist with Dabur India.
The various product lines into which Dabur India is operating are:
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Dabur continues to make innovative products based on traditional
formulations that can provide holistic care in our daily life. An Ayurvedic
medicine used as a digestive aid is branded and launched as the
popular Hajmola tablet.
Real blitzkrieg:
Dabur captures the imagination of young Indian consumers with the launch
of Real Fruit Juices - a new concept in the Indian foods market. The first
local brand of 100% pure natural fruit juices made to international
standards, Real becomes the fastest growing and largest selling brand in
the country.
For most industries, this is the major determinant of the competitiveness of the
industry. Sometimes rivals compete aggressively and sometimes rivals compete
in non-price dimensions such as innovation, marketing, etc.
Number of competitors
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Rate of industry growth
Intermittent industry overcapacity
Diversity of competitors
Informational complexity and asymmetry
Fixed cost allocation per value added
Level of advertising expense
Economies of scale
Sustainable competitive advantage through improvisation
Key players and competitors of Dabur India currently are Hindustan Unilever
Ltd., Tata Tea, Nestle India Ltd., Britannia Industries Ltd., Colgate Palmolive
Ltd., Marico Ltd., Galaxo Smithkline consumer, Cadbury India ltd., Reckitt
Benckiser Ltd., Procter & Gamble. Since the industry is growing at a very rapid
pace and so is the no. of players. So Dabur India has to constantly relook at its
strategy in order to increase its global dominance.
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mentioned previously, suppliers have got wide range of choices. So Dabur India
has to formulate strategy in such a manner to keep abreast with the increasing
competition by improving the quality and reducing the prices over the period.
Due to its over 100 years presence Dabur does have a very strong bond with the
suppliers. Also Dabur does follow the policy of having good relations with all
the peoples with which it deals. This helps in having a good relation with the
suppliers. Also the policy of being accountable to stakeholders be it customers,
without whom it will not be in business, shareholders, who have an important
stake in our business and the employees, suppliers who have a vested interest in
making it all happen- are their stakeholders.
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FUTURE GLOBAL STRATEGY:
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RECOMMENDATIONS:
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